On Wednesday, the Federal Reserve hiked interest rates by 75 basis points, and its Open Market Committee indicated markets should expect further rate increases.
, according to personal finance service Credit Karma, although the amount varies widely across generations and throughout different states. It would take more than 18 years to pay off $6,000 in credit card debt by making $80 monthly payments with a 15 percent APR. The debt would wrack up more than $11,000 in interest over the same time period.U.S.
The committee also noted that"the pace of future increases" would take into account the"cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments." "We still have some ways to go...the ultimate level [of the target rate] may be higher than previously anticipated," Federal Reserve Chair Jerome Powell said during the rate announcement on Wednesday.
Powell added that the key was to get inflation back to 2 percent and that the increases were appropriate for that goal."We will stay the course until the job is done," he said."We have some ground left to cover here. And cover it we will." The consecutive rate increases have led to the fastest pace for rate hikes in decades, according to Kathy Jones, a chief fixed income strategist at Charles Schwab.
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